SVN | SOUTHLAND COMMERCIAL | 120 EAST MAIN STREET, SUITE D, PENSACOLA, FL 32502 OFFERING MEMORANDUM

NNN INVESTMENT6.25% CAP (1 YR)NOI $148,086 (1 YR)10% RENT INCREASES

*2019 (MOE'S)*2020 (STARBUCKS)

PREMIER LOCATION IN MOBILE, ALLOW VACANCY CORRIDOR

390 SCHILLINGER RD SMOBILE, AL 36695

Michael Carro, CCIMSenior Advisor, Principal850.380.3344mcarro@svn.com

Bryan MorelockAdvisor251.979.0553bmorelock@svn.com

NNN - Starbucks & Moe's Southwest Grill - 6.25% CAPComplete HighlightsAsset EvaluationCash Flow (1 Yr)CAP Rate Projection - 2019Rental IncreasesArial MapRetailer MapRegional MapLocation MapsRegional MapPhotosMobile Economic DevelopmentDemographics MapMichael CarroBryan Morelock

OFFERING MEMORANDUMNNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S, MOBILE, AL 36695

OFFERING SUMMARY

Sale Price: $2,369,376

CAP Rate 6.25%

NOI $148,086

2019 Rent Increase - Moes 10%

2020 Rent Increase - Starbucks 10%

Year Built: 2005

Building Size: 4,245 SF

Zoning: Commercial

STARBUCKS - Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington,United States. Starbucks is the largest coffeehouse company in the world, with over 19,000 stores globally, includingaround 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 in Japan. Starbucks sells dripbrewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans.Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film.Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream andcoffee are also offered at grocery stores. Starbucks retail stores are located in high-traffic, high-visibility locations. Itsstores are located in or near a variety of settings, including downtown and suburban retail centers, office buildings anduniversity campuses.

Moe's Southwest Grille - Founded in December 2000 in Atlanta, GA, Moe’s Southwest Grill® is a fun and engagingfast-casual restaurant franchise serving a wide variety of fresh, made-to-order Southwest fare in a welcomingenvironment that rocks. Moe’s currently serves the most awesome Southwest fare at more than 600 locations in theUnited States and abroad. In August 2007, Moe’s Southwest Grill joined FOCUS Brands Inc. Atlanta-based FOCUS BrandsInc. is the franchisor and operator of over 4,300 Carvel® Ice Cream, Cinnabon® Bakery, Schlotzsky’s® Deli, Moe’sSouthwest Grill®, Auntie Anne’s® Pretzels and McAlister’s® Deli locations, as well as the franchisor of Seattle’s BestCoffee® on certain military bases and in certain international markets

This Moe's Franchisee is a strong operator with 5 Locations in the Southeast. They have been in business since 2005 withstrong sales numbers in the Mobile location.

PROPERTY OVERVIEW

• Attractive 10% Rental Increases 2019 (Moe's), 2020 (Starbucks)

• Starbucks Equipped with Drive Thru

• S&P RATING: A (NASDAQ:SBUX)

• Adjacent to Mobile Regional Airport | Home to U.S. Coast Guard Aviation

• Training Center

• Airport Blvd and Schillinger Road Boasts Combined Traffic Counts of +/-56,000

• Average Household Income Within 1 Mile Radius Exceeds $73,259

• 5 Mile Population Surrounding Investment Property Exceeds 105,000

• Near the University of South Alabama

• National Tenants Surrounding Property: Walmart, Lowe’s, Target, Home Depot,

• Kohl’s, Walgreens, McDonald’s, Chick Fil A, PNC Bank, Advance Auto Parts, and

• more

• Amazon and Wal-Mart Distribution Center entering market

Multi-Tenant Net Leased Investment - 6.25% CAP Rate

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 3The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 4The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

SALE HIGHLIGHTS

• Attractive 10% Rental Increases 2019 (Moe's), 2020(Starbucks)

• Starbucks Equipped with Drive Thru

• TENANT S&P RATING: A (NASDAQ:SBUX)

• Moe's Franchisee - Strong Operater

• Moe's Operator has 5 Locations in the Southeast

• Moe's Operator has been with Franchise since 2006

• Adjacent to Mobile Regional Airport | Home to U.S. Coast Guard Aviation

Training Center

• Airport Blvd and Schillinger Road Boasts Combined Traffic Counts of 56,000

• Average Household Income Within 1 Mile Radius Exceeds $73,259

• 5 Mile Population Surrounding Investment Property Exceeds 105,000

• Near the University of South Alabama

• National Tenants Surrounding Property: Walmart, Lowe’s, Target, Home Depot,

Kohl’s, Walgreens, McDonald’s, Chick Fil A, PNC Bank, Advance Auto Parts, and

more

• Amazon and Wal-Mart Distribution Center Under Construction in Mobile market

Complete Highlights

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 5The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

TENANTNAME

UNITSIZE (SF)

LEASESTART

LEASEEND

% OFGLA

PRICEPER SF/YR LEASE TYPE TAX/CAM/INSURANCE ROOF/STRUCTURE/PARKING

Starbucks 1,775 10/04/2004 02/28/2025 41.81 $38.23 NNN Tenant Responsibility Reimbursed through CAM

Moes 2,470 10/14/2004 10/31/2024 58.19 $30.00 NNN Tenant Responsibility Reimbursed through CAM

Totals/Averages 4,245 100% $33.44

Asset Evaluation

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 6The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

LEASE REVENUE TOTALS JAN-18 FEB-18 MAR- 18 APR-18 MAY-18 JUN-18 JULY- 18 AUG- 18 SEP- 18 OCT-18 NOV-18 DEC-18

Starbucks $67,858.20 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85

Moes $74,100 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00

Starbucks MGMT Fee (5%

Base Rent)

$3,392.88 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74

Moe's Opperiating Fee

(EST)

$883 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58

Moes Admin Fee (2.5%

Base Rent)

$1852.44 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37

Totals $148,086.52 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,340.50 $12,973.48 $12,973.48

Cash Flow (1 Yr)

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 7The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

LEASEREVENUE JAN-19 FEB-19 MAR- 19 APR-18 MAY-19 JUN-19 JULY- 18 AUG- 19 SEP- 19 OCT-19 NOV-19 DEC-19

Starbucks $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85 $5,654.85

Moes $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,175.00 $6,792.50 $6,792.50

Starbucks

MGMT Fee (5%

Base Rent)

$282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74 $282.74

Moe's

Opperiating Fee

(EST)

$73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58 $73.58

Moes Admin

Fee (2.5% Base

Rent)

$154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $154.37 $169.81 $169.81

NOI (1YR) $149,352 149,985 $150,618 $151,251 $151,884 $152,517 $153,150 $153,782 $154,415 $155,048 $155,681 $155,681

CAP Rate 6.25% 6.33% 6.36% 6.38% 6.41% 6.44% 6.46% 6.49% 6.52% 6.54% 6.57% 6.57%

CAP Rate Projection - 2019

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 8The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

TENANTNAME MONTHLY RENT ANNUAL RENT ANNUAL RENT + FEE'S

Starbucks

Current (Years 11-15) $5,654.85 $67,858.25 $71,251

10% Increase (Years 16-20) $6,22034 $74,677.08 $78,410

Option 1 - 10% Increase (Years 21-25) $6,842.37 $82,108.48 $86,214

Option 2 - 10% Increase (Years 26-30) $7,526.61 $90,319.33 $94,835

Option 3 - 10% Increase (Years 31 - 35) $8,279.27 $99,351.26 $104,319

Moe's Southwest Grill

Current (Years 11-15) $6,175.00 $74,100.00 $76,026

10% Increase (Years 16 - 20) $6,792.50 $81,510.00 $83,621

Rent Increases

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 9The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Aerial Map

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 10The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Retailer Map

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 11The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

NNN Investment - 6.25% CAP -Starbucks - Moe's Southwest Grill

Regional Map

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 12The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Location Maps

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 13The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

NNN Investment - 6.25% CAP -Starbucks - Moe's Southwest Grill

Regional Map

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 14The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Photos

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 15The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Mobile Economic Development

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 16The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

POPULATION 1 MILE 3 MILES 5 MILES

Total population 3,883 42,134 105,209

Median age 34.4 34.0 36.1

Median age (Male) 33.7 32.3 33.9

Median age (Female) 35.5 35.4 37.7

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 1,377 15,991 40,259

# of persons per HH 2.8 2.6 2.6

Average HH income $73,259 $63,566 $69,304

Average house value $138,662 $165,449 $181,343

* Demographic data derived from 2010 US Census

Demographics Map

120 East Main Street, Suite DPensacola, FL 32502T 850.380.3344C 850.380.3344mcarro@svn.comFL #BK3179263AL #000093777

PROFESSIONAL BACKGROUND

Michael Carro is a CCIM and Commercial Broker Licensed in Florida and Alabama. He is a Principal at SVN | SouthLand Commercial Real Estate

with offices in Pensacola, Panama City and Tallahassee. Before starting SVN | SouthLand Commercial, he was the 2009, 2010, 2011 & 2012 Top

Producer for NAI Halford. He received the NAIOP 2010 “Broker Deal of the Year” Award and the NAIOP “New Development of the Year” in 2014. He

was the Top Producer for SVN | SouthLand Commercial in 2014. In 2016, he was the #1 Top Producer in the State of Florida, and the #3 Top

Producer in the USA for SVN. He was also the recipient of the NAIOP Broker Deal of the Year Award in 2016.

2016 #1 Top Producer in the State of Florida for SVN

2016 #3 Top Producer in the USA for SVN

2016 NAIOP Broker Deal of the Year Award Winner

Restaurant Background

•Founded The Restaurant Realty Network and TheRestaurantRealty.com

•Hosts “The Restaurant Realty Show” weekly on News Radio 1620.

•In 1999 and 2000 oversaw the acquisition of 120 Hardee’s Restaurant locations in Springfield, IL; Biloxi, MS; Pensacola, FL; Huntsville,

Montgomery and Mobile, AL

•Was a member of the International Hardee’s Franchise Association (IHFA) and on the purchasing committee 2002-2006

EDUCATION

•Graduated from the University of Arizona with a BS in Business Administration

•Member of the Alpha Tau Omega fraternity

•Cheerleader for the University of Arizona from 1987 to 1990.

MEMBERSHIPS & AFFILIATIONS

•President of Gallery Night Pensacola

•Board Member for the Downtown Improvement Board

•Former President of Pathways For Change, a faith based sentencing option for non-violent criminal offenders.

•Former President of the Northeast Pensacola Sertoma and “Sertoman of the Year” in 2012 and 2013.

•2008 Received the National “President’s Volunteer Service Award”

MICHAEL CARRO, CCIM

Senior Advisor, Principal

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 17The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Michael Carro, CCIM

120 East Main Street, Suite DPensacola, FL 32502T 251.979.0553C 251.979.0553bmorelock@svn.comFL #SL3266124AL #000098188

PROFESSIONAL BACKGROUND

Bryan Morelock is a licensed Commercial Real Estate Advisor for SVN specializing in Hotel product types and Investmentproperties. Based in Northwest Florida, Bryan actively markets and sells properties throughout the entire Panhandle ofFlorida and South Alabama. Morelock has 6 years of real estate experience , specializing in Single and Multi TenantInvestment Acquisitions and Dispositions.

In 2014 Bryan joined the SVN Hospitality Product Council and became a part the SVN HOTELS - FLORIDA TEAM where heworks in alignment hotel experts in the state and around the country. This transition has allowed Morelock to betterserve the need for hotel buyers and sellers with the ability to present assets on a national level, reaching brokers/buyersfrom all around the U.S. In addition joining SVN HOTELS, Morelock is a member of the Florida Restaurant & LodgingAssociation (FRLA) and Asian American Hotel Owners Association (AAHOA).

Outside of Brokerage, Morelock is very active in the Northwest Florida community. He sits as a board member forNortheast Pensacola Sertoma and serves as the Director for Pensacola Dragon Boat Festival. During the 2017 fiscal yearNortheast Pensacola Sertoma was able to give $100,000 to local organizations such as, Gulf Coast Kid's House, EveryChild a Reader (ECARE), Pathways for Change and ARC Gateway.

EDUCATION

The University of Alabama 2009*Culverhouse College of Commerce and Business Administration

MEMBERSHIPS & AFFILIATIONS

Florida Restaurant & Lodging Association - FRLAAsian American Hotel Owners Association - AAHOAPensacola Chamber of CommerceNortheast Pensacola SertomaDirector of Pensacola Dragon Boat FestivalFlorida Association of RealtorsPensacola Association of Realtors

BRYAN MORELOCK

Advisor

NNN INVESTMENT - 6.25% CAP - STARBUCKS - MOE'S SOUTHWEST GRILL | 390 SCHILLINGER RD S MOBILE, AL 36695 SVN | SouthLand Commercial | Page 18The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Bryan Morelock